M&A Won’t Cure Baidu’s Mobile Woes: Citigroup

Chinese Internet search engine giant Baidu Inc. raised debt in dollars for the first time last week. Citigroup Inc. analysts hope it doesn’t go shopping with that cash.

Baidu issued $1.5 billion worth of bonds last week at tighter yields than expected amid strong investor interest. The company said the money will go towards paying back debt and general corporate purposes, but it’s also recently flagged an appetite for acquisitions, particularly in the mobile space.

Citi wrote in a note that Baidu might want to reconsider buying any more mobile-related companies, at least until it figures out a way of monetizing its mobile traffic.

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